Precious Metals Restructure

Cookson Group PLC
22 January 2007


22 January 2007


                        UK PRECIOUS METALS RESTRUCTURING


Cookson Group plc ('Cookson' or 'the Group'), a leading materials science
company, has announced the next stage of the programme to restructure its UK
Precious Metals business.

This business consists of a manufacturing operation producing alloy materials,
components and semi-finished and finished jewellery, and a distribution and
logistics operation supplying these products to manufacturers, designers,
independent jewellers and retailers.

The distribution and logistics business was restructured in 2006 with the
implementation of new call centre and internet selling systems and is now a
leader in the UK marketplace.   The manufacturing business has, however,
continued to suffer from weakening demand in the industry overall and increasing
competition from low cost imports.

Against this background a fundamental restructuring of the manufacturing
operation is proposed, to be implemented on a phased basis during 2007.

This will result in the closure of the Wrexham factory, which produces chain and
findings, with the manufacturing transferring to a new site in Thailand.  The
majority of the stampings operation currently undertaken in Birmingham will
relocate to the same Thai facility, and certain other products will increasingly
be sourced from the Group's US-based precious metals business. The Dublin sales
office will close, with the Irish market being served direct from the UK as well
as through a local distributor.

These initiatives, which are expected to result in the loss of some 80 jobs,
will result in annualised cost savings of approximately £2.0 million, at a
one-off cash restructuring cost in 2007 of approximately £1.8 million and
capital expenditure of £0.6 million.

Following the restructuring, the Precious Metals division will continue to
employ some 200 people in the UK, at its manufacturing and call centre
facilities in Birmingham and at its Hatton Garden distribution centre in London.

Nick Salmon, Chief Executive of Cookson, said:

'Whilst trading in our UK Precious Metals business has continued in line with
expectations over recent months, the UK market remains subject to increasing low
cost imports and hence these measures are necessary in order to ensure our
competitiveness.

The new structure will combine access to continued high quality manufacturing at
lower cost, together with a state of the art logistics and distribution
operation run from our facility in Birmingham.'


For further information please contact:

Shareholder/analyst enquiries:                       Cookson Group plc
Isabel Luetgendorf, Investor Relations Manager       Tel: [phone]

Media enquiries:                                     Hogarth Partnership                                  
John Olsen                                           Tel: [phone]


About Cookson Group plc

Cookson Group plc is a leading materials science company operating on a
worldwide basis in Ceramics, Electronics and Precious Metals markets.

The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramic products to the glass and foundry industries. It
is also a regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.

The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.


The Precious Metals division is a leading supplier of fabricated precious metals
(gold, silver, platinum, etc.) to the jewellery industry in the US, the UK,
France and Spain. Products include alloy materials, semi-finished jewellery
components and finished jewellery.

Forward Looking Statements

This announcement contains certain forward looking statements which may include
reference to one or more of the following: the Group's financial condition,
results of operations, cash flows, dividends, financing plans, business
strategies, operating efficiencies or synergies, budgets, capital and other
expenditures, competitive positions, growth opportunities for existing products,
plans and objectives of management and other matters. Statements in this
document that are not historical facts are hereby identified as 'forward looking
statements'. Such forward looking statements, including, without limitation,
those relating to the future business prospects, revenues, working capital,
liquidity, capital needs, interest costs and income, in each case relating to
Cookson, wherever they occur in this document, are necessarily based on
assumptions reflecting the views of Cookson and involve a number of known and
unknown risks, uncertainties and other factors that could cause actual results,
performance or achievements to differ materially from those expressed or implied
by the forward looking statements. Such forward looking statements should,
therefore, be considered in light of various important factors. Important
factors that could cause actual results to differ materially from estimates or
projections contained in the forward looking statements include without
limitation: economic and business cycles; the terms and conditions of Cookson's
financing arrangements; foreign currency rate fluctuations; competition in
Cookson's principal markets; acquisitions or disposals of businesses or assets;
and trends in Cookson's principal industries.

The foregoing list of important factors is not exhaustive. When relying on
forward looking statements, careful consideration should be given to the
foregoing factors and other uncertainties and events, as well as factors
described in documents the Company files with the UK regulator from time to time
including its annual reports and accounts.

Such forward looking statements speak only as of the date on which they are
made. Except as required by the Rules of the UK Listing Authority and the London
Stock Exchange and applicable law, Cookson undertakes no obligation to update
publicly or revise any forward looking statements, whether as a result of new
information, future events or otherwise. In light of these risks, uncertainties
and assumptions, the forward looking events discussed in this announcement might
not occur.


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